Cepsa3Q 2020 ResultsNovember 20th, 2020

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Today’s presenters

Salvador Bonacasa

CFO

Gonzalo Sáenz

Head of Finance

Disclaimer

This presentation has been prepared by Compañía Española de Petróleos, S.A. (the “Company”) solely for information purposes and may contain forward-looking statements and information relating

to the Company or its subsidiaries and joint venture companies (together, the “Group”).

Forward-looking statements are statements that are not historical facts and may be identified by words such as “believes”, “expects”, “anticipates”, “intends”, “estimates”, “will”, “may”, “continues”,

“should” and similar expressions. These forward-looking statements reflect, at the time made, the Company’s beliefs, intentions and current expectations concerning, among other things, the

Company’s or the Group’s results of operations, financial condition, liquidity, prospects, growth and strategies. Forward-looking statements include statements regarding: objectives, goals, strategies,

outlook and growth prospects; future plans, events or performance and potential for future growth; liquidity, capital resources and capital expenditures; economic outlook and industry trends;

developments of the Company’s or any other member of the Group’s markets; the impact of regulatory initiatives; and the strength of the Company’s or any other member of the Group’s

competitors. Forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forward-looking

statements are not guarantees of future performance and such risks, uncertainties, contingencies and other important factors could cause the actual results of operations, financial condition and

liquidity of the Company and its affiliates or the industry to differ materially from those results expressed or implied in this document or the presentation by such forward-looking statements. No

representation is made that any of these forward-looking statements or forecasts will come to pass or that any forecast result will be achieved. Undue influence should not be placed on any forward-

looking statement. No statement in this presentation is intended to be nor may be construed as a profit forecast.

All information in this presentation is subject to updating, revision, verification, correction, completion, amendment and may change materially and without notice. The information contained in this

presentation should be considered in the context of the circumstances prevailing at the time and the presentation does not purport to be comprehensive and has not been independently verified.

Except as required by law, the Company does not assume any obligation to publicly update the information contained herein to reflect material developments which may occur after the date

hereof, including changes in its business, business development strategy or any other unexpected circumstance.

Certain financial and statistical information contained in this presentation is subject to rounding adjustments. Accordingly, any discrepancies between the totals and the sums of the amounts listed are

due to rounding. The information included in this presentation has not been subject to a financial audit and includes alternative performance measures (“APMs”), which have not been prepared in

accordance with IFRS, and which should be viewed as complementary to, rather than a substitute for, IFRS financial information. Such APMs are non-IFRS financial measures and have not been

audited or reviewed, and are not recognised measures of financial performance or liquidity under IFRS but are used by management to monitor the underlying performance of the business,

operations and financial condition of the Group.

This document may contain summarized, non-audited or non-IFRS financial information. The information contained herein should be considered in conjunction with other public information regarding

the Company that is available.

This presentation is for the exclusive use of the recipient and shall not be copied, reproduced or distributed (in whole or in part) or disclosed by recipients to any other person nor should any other

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herein and any information provided at the presentation shall form the basis of any investment activity or any offer or commitment whatsoever.

Highlights & Outlook

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3Q 2020 highlightsResults still affected by global crisis although improved performance vs 2Q

• CCS EBITDA of €277 M in 3Q (€910 M YTD), +54% vs 2Q 2020, reflecting thecompany’s ability to generate positive results in an extremely challengingmarket environment

• Cash flow from operations of €224 M during the quarter (€663 M YTD),registering a strong rebound vs 2Q of +159%

• €390 M in Opex and Capex savings captured as of September, from totaltargeted of €500 M

• Strong balance sheet and liquidity position in excess of €4.6 Bn. Long-dateddebt maturity profile of 4.2 years

Contingency

Plan

Financial

Performance

• Operations continued regularly, with all key assets and plants producingnormally

• Signs of recovery, especially in the Upstream and Marketing businesses

• Improved Marketing volumes due to the easing of lockdown measuresand the summer holiday season

• Chemical business continued to outperform, proving to be resilient in themost adverse scenarios

Covid-19

impact

• Acquisition of a 40% stake in two leading Moroccan asphalts companies

• €500M, long 5-yrs bond issue successfully executed in JulyCorporate

events

Fuel demand (Spain)YoY variation

61.9 63.3

50.3

29.2

43.0

3Q19 4Q19 1Q20 2Q20 3Q20

5.7

3.8

4.8

2.2

0.5

3Q19 4Q19 1Q20 2Q20 3Q20

Brent1

$/bbl

Cepsa refining margin (VAR) 1

$/bbl

1.11 1.111.10 1.10

1.17

3Q19 4Q19 1Q20 2Q20 3Q20

Exchange rate1

$/€

Source: Cepsa, CLH. 1. Average figures of each quarter

-28%

-61%

-45%

-20%

-9% -12%-7%

March April May June July August Sept

Market environmentChallenging market environment continued during 3Q, with some signs of recovery in market

volumes

Strong market

recovery

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3Q vs 2Q 2020Strong improvement in both key operating and financial metrics

Key Operating metrics 3Q 2020 2Q 2020 Δ 3Q/2Q

Realized crude price ($/bbl) 42.7 27.8 +53%

Refining throughput (Mt) 4.9 4.4 +12%

Refining utilization 80% 74% +9%

Marketing product sales (Mt) 3.8 3.0 +30%

Chemical product sales (kt) 693 691 +0%

Source: Cepsa 1. Before working capital variation. 2. Cash plus available committed facilities

Key Financial metrics 3Q 2020 2Q 2020 Δ 3Q/2Q

CCS EBITDA 277 180 +54%

CCS Net Income 39 (93) +142%

Cash Flow from operations1 224 86 +159%

Net Debt 2,858 3,131 (9%)

Total Liquidity2 4,617 4,524 +2%

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• Crude prices have stabilized in the 40

to 45 $/bbl range

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Covid-19 impact on businessUpstream

• Lower production mainly due to OPEC

quota restrictions

Realized oil price

40.9 $/bbl

WI Production

76.9 kbopd

EBITDA

337M€

YTD Figures

• Strategic location, operational flexibility

and high degree of integration provides

greater optionality to optimize margins

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• European refining margins continue

to be under pressure

Covid-19 impact on businessRefining

Utilization Rate

81 %

Throughout

14.7 Mt

EBITDA

34 M€

YTD Figures

• Increased volumes vs 2Q due to end of

mobility restrictions and summer holiday

season

• Strong performance of Wholesales

and Asphalts on improved margins

and increased exports

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Covid-19 impact on businessMarketing

Product Sales

11.1 Mt

Service Stations

1,784

EBITDA

307 M€

YTD Figures

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Covid-19 impact on businessChemicals

• Global leadership and resilient nature

have proven as a competitive

advantage in current market context

• Solid performance of LAB segment

• Healthy margins

Product Sales

2.1 Mt

LAB Sales

528 Kt

EBITDA

256 M€

YTD Figures

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Contingency planWell under way, with 78% of targeted savings already captured

• New committed banking facilities for a total of €1.1 Bn since March 2020

• Two bond issues totaling €1.0 Bn, executed in February and July

• Strengthen liquidity of €4.6 Bn and increased average debt maturity of 4.2 yrs

Financial

initiatives

• €500 M in targeted opex and capex savings

• €390 M captured as of September (78%)

• Strict Working Capital management

• Hedging of energy costs at historical low levels

Operational

initiatives€390 M

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• Oil prices expected tostabilize with news ofadvances on Covid-19vaccine

• Production expected toremain stable as OPECrestrictions are extendeduntil year-end

• Refining margins toremain under pressuredue to subdued demandfollowing restrictions tofight second wave of

infections in Europe

• Utilization expected toremain at similar levels inthe short-term

• Certain decrease involumes compared toprevious months due tonew restrictions imposedderived from the second

wave of Covid-19infections

• Margins expected toremain healthy

• Volumes, especially in LAB(detergents), expected toremain strong

• Expected stable to higher

margins in the near term

Short term outlookGradual recovery, although continued macro volatility

Upstream Refining Marketing Chemicals

9M 2020 Results

Key Operational KPIs 9M 2020 9M 2019 Δ 20/19

WI Upstream Production (kbopd) 76.9 93.5 (18%)

Realized Crude Oil Price ($/b) 40.9 64.3 (36%)

Upstream Opex ($/bbl) 10.0 9.9 1%

Cepsa refining margin – VAR ($/bbl) 2.6 4.5 (42%)

Utilization rate refineries (%) 81% 90% (10%)

Marketing Product Sales (Mt) 11.1 15.9 (30%)

Chemicals Product Sales (Mt) 2.1 2.2 (5%)

Source: Cepsa

Operations have continued regularlyOperational flexibility and strong integration mitigates the impact of

lower volumes and prices

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Key financial metrics (€M) 9M 2020 9M 2019 Δ 20/19

Net Income 31 424 (93%)

Cash Flow from operations before WC 663 1,294 (49%)

Accounting Capex 464 590 (21%)

Results marked by global crisis due to Covid-19Challenging market environment persists, with pressure on refining

margins and subdued demand

Source: Cepsa 1. Clean Current Cost of Supply, excluding non-recurring items. 17

EBITDA by Business (€M)1 9M 2020 9M 2019 Δ 20/19

Upstream 337 712 (53)%

Refining 34 347 (90)%

Marketing 307 342 (10)%

Chemicals 256 186 38%

Corporation (25) (36) (31)%

Group EBITDA 910 1,551 (41)%

Cash Flow Statement (€M) 9M 2020 9M 2019 Δ 20/19

Clean CCS EBITDA 910 1,551 (41)%

Income tax paid (222) (284) (22)%

Others1 (25) 28 (189%)

Cash flow from operations before WC 663 1,294 (49)%

Changes in working capital (18) 80 (122%)

Cash flow from operations 645 1,374 (53)%

Capex (590) (644) (8%)

Growth (419) (502) (17%)

Maintenance (178) (217) (18%)

Other cash flow from investments 7 75 (91%)

Leasing and interest payments (185) (180) 3%

Free cash flow before dividends (129) 550 (123%)

Source: Cepsa 1. Includes dividends from associates and other adjustments

Cash flow generationPositive Free Cash Flow before discretionary growth capex, despite 50%

decrease in CF from operations

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Capital Structure (€ M) 9M 2020 9M 2019 FY 2019

Non-current bank borrowings 2,377 2,180 2,661

Current bank borrowings 651 630 146

Bonds 1,500 500 500

Cash (1,670) (508) (561)

Net debt excluding IFRS16 liabilities 2,858 2,802 2,746

IFRS16 liabilities 661 786 761

Net debt including IFRS16 liabilities 3,519 3,588 3,507

Net debt to LTM CCS EBITDA1 2.2x 1.4x 1.4x

Liquidity2 4,617 3,055 3,100

Avg. maturity of drawn debt (yrs) 4.2 4.3 4.8

Source: Cepsa 1. Excluding IFRS16. 2. Cash plus available committed facilities

Strong balance sheet and liquidityLiquidity position of €4.6 Bn covering maturities up to September 2025

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-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

Cash 2020 2021 2022 2023 2024 2025 2026 2027 2028 &

onwards

Gross Debt Bonds Available Committed

Figures in €M

Debt avg maturity

4.2 Years

Cash position

€1,671 M

Liquidity1

€4.6 Bn

Debt maturity profileLong-dated average maturity of 4.2 years with no significant debt maturities up to 2024

Source: Cepsa 1. Cash plus available committed facilities

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Agency

Stable Outlook

Last review

BBB-

LT Rating

Baa3 Negative Outlook

Outlook

June 2020

April 2020

BBB- Stable Outlook April 2020

• Conservative financial policies consistent with Investment Grade credit profile

• Investment Grade credit ratings are a key priority for both the Company and its shareholders

Ratings summaryAll three agencies affirmed Cepsa Investment Grade ratings post-Covid

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Thank you